Manheim Reports Increase In Q1 Used Vehicle Values

ATLANTA--April 7, 2014: Used vehicle sales for dealers went from good
to even better in the first quarter of the year with strong demand that
held up through the harsh winter. The Manheim Used Vehicle Value Index, a
measure of wholesale prices adjusted for mix, mileage and season, increased
2.2% during the quarter and was 3.3% higher than a year ago.

Tax refunds as of late March were up 3% from a year ago, which gave
consumers extra money toward the purchase of used vehicles. Weather also
helped boost values for used vehicles as rental car companies delayed
de-fleeting. Winter storms caused more vehicle damage than normal, which
led to increased insurance replacement demand or loaners while customer
vehicles were repaired.

"Rental risk units flowing back into the wholesale market remained
depressed in March after being at low levels in January and February," said
Manheim Chief Economist Tom Webb. "The weather was the chief culprit in
keeping these units out of the used car market. Rental car companies held
onto their fleets longer than normal because demand was so high in the
insurance replacement segment."

First-quarter pricing for vehicle segments included:

Compact Cars continued to be a weak spot in the market as consumers
shifted to midsize cars and CUVs. Wholesale values for compact cars ended
March down 0.1% from the same period last year.

Midsize Cars were a popular choice for consumers in the used car market
with pricing up 4.5% at the end of March on a year-over-year basis.

Luxury Car values fell 0.6% in March from the year-earlier period as
more off-lease vehicles reached the market. The number of off-lease
vehicles is expected to increase for the rest of the year.

Pick-ups and Vans both remained strong thanks to a recovering economy
with new businesses needing work vehicles. Used vehicle values for pickups
were up 9.8% in March and van values were up 5.3% compared to the same
period last year.

SUV and CUV values rose 3.6% in March compared to a year ago, largely
driven by the popularity of mid-size CUVs that provide a combination of
space, utility and fuel efficiency.

Wholesale prices are expected to decline for the full year with an
increased supply of used vehicles, Webb said. In the near-term, though,
prices should remain strong. Massive recalls and a late Easter will likely
delay rental units from flowing into the wholesale market.

"The end result so far has been higher prices and higher mileage
vehicles in the wholesale used vehicle market," Webb said. "By the end of
the year, we expect pricing to moderate as rental units eventually make
their way into the wholesale market and the acceleration in off-lease units
becomes more pronounced."

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